Reasons why the oil and natural gas industry talks about a regulatory “tsunami” coming down from EPA:

• A newly proposed Tier 3 rule to further lower sulfur content in gasoline – that would have “very small” additional environmental benefit, according to a recent study. At the same time, it could increase the manufacturing cost of gasoline by up to 9 cents per gallon. (More on Tier 3 below.)
• Increases in the federal ethanol mandate under the Renewable Fuel Standard – which could add to the manufacturing cost of gasoline by about 30 percent by 2015, according to a study by NERA Economic Consulting. (Posts on that here, here, here and here.)
• A potential vapor pressure reduction requirement that could increase refinery costs.
• An expected Refinery Sector Rule, new ozone requir... more »

Good call by the president, halting EPA's proposed tightening of the national ozone standard.

Saddling a limp economy with a new regulation that could kill millions of jobs while adding $1 trillion a year in new compliance costs, didn't make much sense. By some estimates, 85 percent of the country would've been in non-compliance with the stricter standard - one that Howard Feldman, API's director of regulatory and scientific affairs, last month called "incompatible with ... what most Americans do to earn a living."

The administration decided the timing wasn't right. In a letter to EPA Administrator Lisa Jackson, Cass Sunstein of the White House's Office of Information and Regulatory Affairs said it was "problematic" to re-do the ozone rule this year when regular review of the standard is c... more »

The administration is trumpeting a newly released plan it says could save $10 billion over five years by eliminating hundreds of regulations and streamlining the federal bureaucracy. Cass Sunstein, administrator of the White House Office of Information and Regulatory Affairs:

"Today, we are announcing that agencies are releasing their final regulatory reform plans, including hundreds of initiatives that will reduce costs, simplify the system, and eliminate redundancy and inconsistency. As the plans demonstrate, a great deal has been achieved in a short time. Significant burden-reducing rules have been finalized or publicly proposed from the Department of Labor, the Environmental Protection Agency, and the Department of Transportation."

Writing in the Wall Street Journal [subscription requi... more »

When you think about it, the Environmental Protection Agency is asking an awful lot from the country with its proposed, more restrictive standard on ozone. Underline the word "awful":

• 7.3 million U.S. jobs could be lost by 2020, according to a Manufacturers Alliance (MAPI) study.
• An additional $1 trillion in new regulatory costs per year between 2020 and 2030 again, according to the MAPI study.
• About 85 percent of the country in non-compliance with the new standard, including pristine areas like Yellowstone National Park. More below.

Here's the kicker: EPA has no real idea how the country would get in compliance. In its proposal the agency suggests new technologies will make compliance possible. Sounds like a leap of faith ... off a cliff. Howard Feldman, API's director of regulatory and... more »

The U.S. Senate could vote today on measures addressing the Environmental Protection Agency's (EPA) regulation of greenhouse gas (GHG) emissions from stationary sources. These measures and the EPA's regulatory proposal on ozone were the topics of discussion in a blogger conference call on Tuesday. Howard Feldman, API's director of scientific and regulatory affairs; Misty McGowen, director of federal relations; and Khary Cauthen, director of federal relations, took questions from bloggers about Congressional action to limit EPA overreach.

Ms. McGowen explained that there is a "groundswell of activity" on EPA regulation of greenhouse gases in the United States Senate and House of Representatives. In particular, she highlighted Sen. McConnell's, Sen. Rockefeller's and Sen. Baucus' amendments... more »